How To YieldBoost Harte-Hanks From 3.9% To 10% Using Options
March 31, 2014 at 11:48 AM EDT
Shareholders of Harte-Hanks, Inc. (HHS) looking to boost their income beyond the stock's 3.9% annualized dividend yield can sell the September covered call at the $10 strike and collect the premium based on the 25 cents bid, which annualizes to an additional 6.1% rate of return against the current stock price (at Stock Options Channel we call this the YieldBoost), for a total of 10% annualized rate in the scenario where the stock is not called away..